E-learning weathers a bear market

A broad U.S. economic slowdown, which began in the fourth quarter of 2000, has changed the tune of all but the most optimistic forecasters of e-learni ng. As a component of the larger e-business economy, e-learning has seen a change in fortune from the halcyon days of 2000. If the economy enters a recession and companies move toward cost-containmen t strategies, the question is whether e-learning will bear the same budget cuts that training departments and other "cost centers" often face during l ean times. Some analysts say that progress in aligning e-learning and train ing with business goals, together with growing recognition of the competiti ve value of a well-trained workforce, will help defy the cost-cutting legac y. Nevertheless, venture capital financing of corporate e-learning firms shran k in the fourth quarter of 2000. Smart-Force, Saba, Click2learn.com, and ot her e-learning technology providers have suffered recent revenue losses. Wh at's in store for 2001? Market watchers say that corporate e-learning is faring relatively well. Th anks to some high-profile cheerleaders and the entrance of heavy hitters fr om the software and consulting fields, e-learning's value proposition is ev ident. E-learning has two valuable assets that tie learning to business objectives : the savings in training-related travel expenses for organizations that ha ve migrated to e-learning approaches, and savings in productivity of employ ees using e-learning rather than traditional classroom training. Training managers can keep on top of the changing environment by determining the financial strength of e-learning vendors using e-learning to demonstrate its value to the organization refusing to shift your focus from improving the business to improving the e fficiency of training.